Purchase prices for common alloys in China may continue to slide in August

Tuesday, 27 July 2010 13:57:26 (GMT+3)   |  
       

Over the past week China's common alloys market has continued to be characterized by sluggishness. Due to poor demand caused by the weakness in the steel market, prices in the domestic common alloys market have maintained their declining trend. In this context, it is thought that the purchase prices for common alloys may continue to slide down in August.

Product name

Specification

Place of origin

Price

(RMB/mt)

Weekly change (RMB/mt)

Price  ($/mt)

Weekly change ($/mt)

Silicon manganese

FeMn65Si17

Guangxi

7,600

-50

1,122

-7

Ferrosilicon

FeSi75

Gansu

6,350

-50

937

-7

In the past week, market quotations of FeMn65Si17 are at RMB 7,600-7,900/mt ($1,121-1,165/mt) in the north of China, down RMB 100/mt ($15/mt) week on week, and are at RMB 7,400-7,700/mt ($1,091-1,136/mt) in the south of the country, with the lower end down by RMB 100/mt ($15/mt) week on week. At the same time, the mainstream price of FeMn65 stands at RMB 7,500-7,600/mt ($1,106-1,121/mt), unchanged week on week. Meanwhile, export offers of FeMn65Si17 are at $1,450/mt FOB, unchanged week on week.

Over the past week China's manganese alloy market has continued to soften. Since most steel mills are implementing production cutbacks or stoppages, the resulting decrease in demand may lead to a reduction in purchase prices for manganese alloys. Currently, ferroalloy producers are faced with great cost pressure due to the high levels of both electricity charges and manganese ore prices.

In the domestic ferrosilicon market, quotations have declined by a small margin. Currently, ex-works prices of ferrosilicon (75 percent) in the northwestern region stand at RMB 6,350-6,400/mt ($929-944/mt), down RMB 50/mt ($7/mt) week on week, while export offers of ferrosilicon (75 percent) have remained at $1,350/mt FOB.

Over the past week the ferrosilicon market has been in confusion as regards market prices, with expectations that purchase prices for August may continue to slide down. Meanwhile, the ferrosilicon export market is characterized by weakness, with foreign buyers starting to adopt a wait-and-see attitude in line with the decreasing price trend in the domestic market.

In June this year, China exported 84,800 mt of ferrosilicon, down 22.39 percent compared with the previous month. During the first six months of 2010, China exported 423,300 mt of ferrosilicon, up 25.04 percent year on year.


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